Coming from a background of technology and investment banking, I thought that I would speak about technology and investment today. I will teach you how to see and identify stocks that have the most value, for you to make money.
Now we know that technology is driving industries today and there’s a new industrial revolution that is happening which is Industry 4.0. All businesses in the world today must adopt technology as part of their business strategy and also survive.
How has technology evolved? It started with compute, and thus computer. Then we needed power to energise it. I mean, if you have a computer without power, it’s called an abacus. So, power is necessary. In order for it to operate and function well, it has an operating or programming language to enable it to operate in a rule-oriented manner.
EVOLUTION AND VALUATION
Now, this technology evolution has changed the way companies are being valued today. Traditional companies were valued at 10 times of their revenue in the 90s. So, if they have a 10-million-dollar revenue, that means they are valued as a 100-million-dollar company. Today, because they are still traditional their valuation has come down to only 8.4 times. This means that without making a change, traditional companies now have a lesser value, [at only 84 million].
When you see mergers and acquisitions happening, you will see some companies with very little or no profit, but they have huge revenue and customer base. Their take over (mergers) values are very high because they are driven by technology.
Now there are companies that provide services using technology while remaining within their industry domain. These companies, while remaining in their industry domain have had their valuation moved up by 12.6 times. They are within the same domain and have a revenue of 10 million, but they’re now worth 126 million.
[This means that, today], traditional companies are valued at 84 million. New companies providing services via tech, and are within same domain, are valued at 126 million.
What does it mean to be in the same domain? [Well, a] bank is a bank and a post office is a post office. They may have digital initiatives. However, today, top-value companies are multi-cross industry platform providers. They are the ones who were able to connect multiple industries. Like Grab, which is now not only a ride hailing company, but is also into food and soon, financial services. We will see their valuation rise by 24 times. They do not operate like an e-hailing company within their industry. They go into the food industry and they get into the banking industry. In the investment world, they are known as the ecosystem orchestrator.
ORCHESTRATE YOUR ECOSYSTEM
Now this is a very unique name given to new tech companies. What does it mean to be an ecosystem orchestrator? They are organisations that have a platform that has the ability to connect to multiple programming languages and be of service to multiple industry ecosystems.
Now, this is the most important factor.
Today we are talking about multiculturalism. If computers and technology can communicate with each other, though having different programming languages, then humans should do better. This is because computers are like humans. Religion is like the programming language. It stays as the foundation and principle for it to operate. And love is the power that connects and energises.
Being multicultural does not change your programming language or religion. In fact, like the orchestrated ecosystem, multiculturalism will add, enhance and ensure the survival of humanity. It will also have the highest humanity value. So, if you say multiculturalism in today’s world is going to threaten religion and faith, it’s actually a wrong connotation. Because your religion and your faith put you in order. Multiculturalism puts you in an ecosystem that increases your value of being a human. And you connect all of the values through love.
It’s not about differentiation. It’s about how you stay within your principle of life and you are able to interact and stay within your principles while bringing to other societies and increasing the value of humanity in togetherness. So, it’s not going to be a challenge; it’s not going to be disruptive; it is going to increase human value.
Let love and humanity live above all. As intermediaries, we should embrace this thought in our teachings. It’s simple once you’ve understood how to apply it into your daily life.
And now you get two bonuses: one, you know how to invest in companies. And, two, you know how interact at the level of humanity with love.
Life is as simple as that.